Sonic 2006 Annual Report Download - page 20

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System-Wide Performance
Year Ended August 31,
2006 2005 2004
($ in thousands)
Percentage increase in sales 10.7% 12.4% 13.1%
System-wide drive-ins in operation (1):
Total at beginning of period 3,039 2,885 2,706
Opened 173 175 188
Closed (net of re-openings) (24) (21) (9)
Total at end of period 3,188 3,039 2,885
Core markets(2) 2,435 2,165 2,059
Developing markets(2) 753 874 826
All markets 3,188 3,039 2,885
Average sales per drive-in:
Core markets $ 1,105 $ 1,059 $ 1,004
Developing markets 954 934 861
All markets 1,070 1,023 964
Change in same-store sales(3):
Core markets 5.3% 5.6% 6.4%
Developing markets 1.5 7.4 6.8
All markets 4.5 6.0 6.5
(1) Drive-ins that are temporarily closed for various reasons (repairs, remodeling, management changes, etc.) are not
considered closed unless the company determines that they are unlikely to reopen within a reasonable time.
(2) Markets are identified based on television viewing areas and further classified as core or developing markets based
upon number of drive-ins in a market and the level of advertising support. Market classifications are updated
periodically.
(3) Represents percentage change for drive-ins open for a minimum of 15 months.
System-wide same-store sales increased 4.5% during fiscal year 2006, with growth for the year in all of our non-
traditional day parts (morning, afternoon and evening).The average check amount (average amount spent per
transaction) represented a larger portion of the overall sales increase than traffic growth (number of transactions). This
marked our 20th consecutive year of positive same-store sales growth. We believe our strong sales performance is a
direct consequence of our specific sales-driving initiatives including, but not limited to:
• Continued growth of our business in non-traditional day parts including the morning, afternoon and evening
day parts;
• Use of technology to reach customers and improve the customer experience;
• Monthly promotions and new product news focused on quality and expanded choice for our customers; and
• Growth in brand awareness through increased media spending and greater use of network cable advertising.
Sonic Corp. 2006 Annual Report
18
Management’s Discussion and
Analysis of Financial Condition
and Results of Operations